Eq: Total Market

November was full of volatility, and that's more than leaked into December, but Goldman warned investors about buying the dip hoping for a post Christmas rally. The biggest two threats Goldman sees are ongoing, the new omicron Covid 19 variant and the newfound inflation hawkishness by the Fed. The bear wave has hit a variety of asset classes whether its tech or bitcoin, and their risk appetite is low. The street is mixed however as some indications of omicron is it won’t be severe and Fed actions haven’t taken hold just yet. The VIX is still above its short and longer run moving averages which should keep investors cautious.

FINSUM: There is really no reason to move drastically right now, the Fed will be more transparent in the next couple of months.

ETFs have been a fee destroyer since their inception, and advisors/companies have been forced to either play along or bleed AUM. However, direct/custom is putting the power back in in the hands of the advisors. BlackRock, Vanguard, and Morgan Stanley are all buying their way into the direct indexing craze. Direct Indexing is giving investors and advisors the best of both active and passive investing worlds. While stock picking might not have the best record, starting from a base index and then stripping or adding based on preference could give investors. Custom Indexing can be for a preference for/or against a stock but more importantly it gives investors the reins when it comes to their tax burdens.

FINSUM: Direct Indexing is the goldilocks solution to the low fee/advisor specialty conundrum, and will be the dominant trend in investing over the next decade.

Markets were flummoxed early this week with the growing Omicron Covid-19 variant spreading rapidly in pockets globally. Despite these growing concerns and a seemingly endless pandemic, the JPMorgan is calling for a big 2022. With one of the absolute highest predictions on wall street JPMorgan is calling for a 5050 S&P 500 to end 2022. Easing supply chains, earrings growth and a more stable China are the key parts of their prediction for a successful equity market in 2022. Even if investors overweight China in their portfolios, the biggest threat will be domestically. A hawkish turn by the Fed would be detrimental to their prediction and is still the largest sort of risk in JPMorgans eyes.

FINSUM: Powell is talking tapering and rate rises just as Omicron is spreading which could be the perfect storm for a bad Q1 in 2022.

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